Impact of increase in price of one good

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Assume x and y are the only two goods a person consumes. If after a rise in px, the quantity demanded of y decreases, one could say

a. The income effect dominates the substitution effect.
b. The substitutions effect dominates the income effect.
c. It is still impossible to determine whether the substitution or income effect dominates.
d. None of the above.

Reference no: EM1315934

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